FG eyes technology to boost oil revenue, Edun says

Nigeria is looking to harness advanced technology to boost oil revenue and address its significant budget deficit, Wale Edun, Nigeria’s minister of finance said at the World Economic Forum.

Africa’s largest oil producer is aiming to finance a budget deficit estimated at 3.9 percent of its Gross Domestic Product (GDP) without resorting to traditional methods such as printing money.

Instead, Edun emphasised the government’s strategy of tapping into the financial markets for funding, using a variety of financial instruments including concessional finance, bilateral agreements, and commercial markets.

“We are looking at a whole gamut of financial instruments at our disposal,” Edun said. “We’re focusing on ensuring that the funds we raise come on reasonable terms, so we can manage our finances sustainably.”

Although it is still early to determine the exact amount the government aims to raise, Edun highlighted the importance of leveraging technology to ramp up revenue collection from state-owned enterprises, particularly the Nigerian National Petroleum Company and from oil production.

Edun’s comments come as Nigeria witnesses a rebound in crude oil output, which had previously struggled due to security concerns and lack of investment.

Recent government efforts to enhance security and attract investment have resulted in improved oil production, putting Nigeria in a stronger position within OPEC+.

Read also: Nigeria to lobby OPEC for higher quota

In addition to oil, Nigeria has also made strides in reviving its refining capacity. The inauguration of Aliko Dangote’s new refinery and the reopening of two state-owned refineries have further strengthened the country’s oil sector.

Edun emphasised that improved revenue collection would have far-reaching benefits. “These efforts will help improve debt-service ratios and reduce our debt-to-GDP ratio,” he explained. “This means a better fiscal outlook for the country.”

For 2025, the Nigerian government has projected a revenue collection of N34.8 trillion naira ($22.5 billion) and a budget deficit of N13.1 trillion.

Edun expressed confidence that reforms, particularly those introduced by President Bola Tinubu since May 2023—such as subsidy removal and the free-floating of the naira—will attract investment and drive economic growth.

With GDP growth expected to expand by 4.17percent this year, compared to 3.36 percent in 2024, central bank Governor Olayemi Cardoso also expressed optimism about the country’s economic outlook, citing the positive effects of these market-friendly reforms.

As Nigeria continues its journey to improve its fiscal health, the emphasis on technology, improved governance, and sectoral reforms may serve as key pillars in the country’s drive toward economic stability and growth.